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Micro Study

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Submitted By SammiJo1004
Words 1045
Pages 5
1. What are barriers to entry, and how do they limit potentially new competition from entering the market?
2. The purpose of Antitrust Laws are to:
The antitrust law is not intended to protect any particular company but to protect access to and competition in the market so that consumers have access to best prices and products. Some companies will fail and that's okay!
1) Preserve a free market
2) Promote competition
3) Prohibit unfair methods of competition
4) Protect consumers
3. Firms that place their assets in the custody of a board of trustees are called: Trust
4. The level of income below which a family is considered poor according to our textbook would be: Poverty Line
5. A certain business hired 4 workers who together can produce 80 products per day. The market price of the product is $5 each, and the price of workers is $60 per day. The car wash should hire a fifth worker if it would increase total production to at least: c. 92
6. In the Long Run, monopolistically competitive firms will have: (List what happens in the Long
Run under this type of market structure). Have excess production capacity
7. Why can a monopoly earn profits in the long run? Because of barriers to entry
8. In the long run, both monopolistic competition and perfect competition result in what? (List) Zero economic profit
9. Profits are maximized by producing at the level of output where marginal revenue is equal to marginal cost.
10. A firm’s demand for labor coincides with the: (What type of curve?)Marginal Revenue Product Curve
11. When a firm hires an additional unit of labor, the increase in a firm's total revenues is known as the marginal: revenue product
12. List what is not counted when we compare a family’s income to the poverty line? Medicaid Benefits
13. Alcoa had a monopoly in the U.S. aluminum market from the late nineteenth century until the end of

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